While revenues did increase by 26%, this was not enough to offset Russia's staggering spending costs, exacerbated by the ongoing war with Ukraine.

The Central Bank was forced to hike rates late last year, as inflation threatened to spiral out of control. Officials have not ruled out a further rise, with some experts predicting a rate of 22% by the end of the first quarter of this year.

Russia is reporting a budget deficit exceeding 3 trillion rubles for the third consecutive time. The main reason is the cost of the war in Ukraine, according to "Puls Biznesu." In 2024, the deficit amounted to 3.